We have a FTA with China which has of yet not been violated by either China or Australia. Posters on these threads have to appreciate that China buys 40% of our exports and tolerates a $45 billion annual trade surplus . We run trade deficits with others including the USA. In summary. however we had experienced an overall trade deficit up to last year until improved iron ore and met coal tipped us into surplus.
Our Ag exports to China has been gazumped by Trump in his recent deal with China which gives priority to US farm exports to China to the tune of $45 Billion to $50 Billion USD/P/A for 2 years and the current noise with China simply reflects the consequence of that deal.It seems that the USA only wants a level playing field when it benefits Uncle Sam . In this case it is unwilling to fairly compete with Aus for farm exports to China and this is what we should have objected to last January when the deal was cut. Instead we remained mute which implied acceptance!
Trump is positioning himself for re-election and he is doing that in the best way he knows and, in this instance, its cutting a deal for US farmers yielding them better prices for their produce in lieu of their votes. China knows that, our Government knows that and most well read posters on these threads know that but I guess the zenophobes here will spin it for their own ends and against our national interest.
When the meat stoppage was announced by China this morning the AUD immediately dropped but once the Trade Minister went on TV saying that the beef export stoppage to China was for non-compliance labeling which has been going on for over a year, the AUD rapidly recovered. The point being is that those with real skin in the game believe the Minister, not the speculative meanderings on these threads.
We have a FTA with China and there is no evidence that China has breached it yet.
There is evidence, however, that Trump attempted to breach our US FTA when he proposed to impose import tariffs on Aussie steel & aluminium.
